NY won’t build big data centers for a year as it weighs energy and climate risks
New York Governor Kathy Hochul signed an executive order imposing a statewide moratorium on large data center construction for up to a year. This action aims to create rules protecting the environment and the energy grid from the significant power and water demands of hyperscale data centers. The decision places New York at the forefront of regulating the AI industry, balancing economic development with environmental and affordability concerns.
New York Governor Kathy Hochul has enacted the country's first statewide moratorium on hyperscale data centers, signing an executive order on Tuesday to halt their construction for up to a year. The order is intended to allow state regulators to develop standards addressing the environmental impacts, energy demand, and water usage associated with these power-hungry facilities, which house thousands of computer servers.
The move puts New York at the center of a national debate over regulating the burgeoning artificial intelligence industry. Governor Hochul, speaking at a signing ceremony in Brooklyn, emphasized the need to prevent rising utility bills, depleted water supplies, and noise pollution caused by these massive facilities. While former President Donald Trump and tech companies warn against such regulations, arguing they stifle job growth, New York's decision holds political significance for Hochul's reelection campaign, as Democrats address affordability concerns.
Dan Diorio of the Data Center Coalition expressed concerns that the moratorium would divert investments, jobs, and economic activity away from New York. State Senator Kristen Gonzalez, a Democrat who sponsored a similar but more complex legislative bill, joined the governor at the signing, stating, "If Big Tech is coming onto our turf, it should be on our terms." Despite some counties and municipalities having temporary bans, New York's executive order is the first statewide measure of its kind, taking immediate effect.